Banks, NBFIs must report investments in bonds, debentures, preference shares to CIB

The Bangladesh Bank has instructed scheduled banks and non-bank financial institutions to report their investments in non-listed securities – such as non-convertible cumulative preference shares, non-convertible bonds, and debentures – to the Credit Information Bureau (CIB) database. 

The directive, issued in a circular on 29 September, aims to ensure that risks associated with such investments remain at an acceptable level by treating them as loans for reporting purposes.

According to the central bank, investments in non-listed securities are increasingly being used as financial instruments across the sector. Bringing this information under the CIB framework will allow for more accurate assessments of borrowers’ liabilities and help strengthen overall risk evaluation. 

The circular noted that inclusion of such investments in the CIB system would support a more comprehensive monitoring of borrower portfolios and improve loan risk assessments.

Alongside the principal investment, the classification status of these securities must also be reported. In addition, any interest receivable on loans, which is shown under other asset accounts but has not yet been collected, must be consolidated with the relevant loan details and reported to the CIB.

In cases where such accrued interest cannot be transferred under other asset categories, it will have to be classified as “substandard” or “bad or loss” and reported accordingly under the borrower’s name in the CIB database.

The circular further states that data regarding investments in non-listed securities and interest receivable on loans, as of 31 October 2025, must be reported to the CIB by 15 November 2025. 

This submission must comply with existing CIB guidelines and can be made either in bulk format or through manual real-time entry. From 1 November 2025 onwards, all new investments in non-listed securities and related interest receivables shown in other asset accounts must be reported on a monthly basis in line with the CIB reporting deadlines.

The Bangladesh Bank also clarified that if, during onsite inspections by its Banking Inspection Department or Financial Institutions Inspection Department, any non-listed securities or other assets – including non-convertible cumulative preference shares and non-convertible bonds or debentures – are found to be in need of reclassification, such information must immediately be updated in the CIB database.

Moreover, any subsequent additions, modifications, or adjustments to the data on non-listed securities or accrued interest must be reported to the CIB system in real time. 

The central bank cautioned that if banks or financial institutions submit false or misleading information or conceal data during reporting, they will face financial penalties.